Switch to:
Mylan NV (NAS:MYL)
Beneish M-Score
-2.65 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Mylan NV has a M-score of -2.65 suggests that the company is not a manipulator.

MYL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.39   Max: -0.5
Current: -2.65

-4.39
-0.5

During the past 13 years, the highest Beneish M-Score of Mylan NV was -0.50. The lowest was -4.39. And the median was -2.48.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Mylan NV for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9305+0.528 * 1.0638+0.404 * 1.1847+0.892 * 1.1417+0.115 * 0.8292
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0387+4.679 * -0.0485-0.327 * 1.2784
=-2.65

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $3,099 Mil.
Revenue was 3057.1 + 2560.7 + 2191.3 + 2490.7 = $10,300 Mil.
Gross Profit was 1283.3 + 1171.7 + 907 + 1062.6 = $4,425 Mil.
Total Current Assets was $7,965 Mil.
Total Assets was $36,539 Mil.
Property, Plant and Equipment(Net PPE) was $2,284 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,387 Mil.
Selling, General & Admin. Expense(SGA) was $2,384 Mil.
Total Current Liabilities was $9,554 Mil.
Long-Term Debt was $11,329 Mil.
Net Income was -119.8 + 168.4 + 13.9 + 194.6 = $257 Mil.
Non Operating Income was -50.2 + -117.5 + -16.3 + -134.7 = $-319 Mil.
Cash Flow from Operations was 1200.6 + 416.6 + 80.5 + 652 = $2,350 Mil.
Accounts Receivable was $2,917 Mil.
Revenue was 2695.2 + 2371.7 + 1871.7 + 2082.7 = $9,021 Mil.
Gross Profit was 1315.3 + 1008.1 + 830.1 + 969 = $4,123 Mil.
Total Current Assets was $6,486 Mil.
Total Assets was $21,317 Mil.
Property, Plant and Equipment(Net PPE) was $1,885 Mil.
Depreciation, Depletion and Amortization(DDA) was $860 Mil.
Selling, General & Admin. Expense(SGA) was $2,010 Mil.
Total Current Liabilities was $3,684 Mil.
Long-Term Debt was $5,846 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(3098.9 / 10299.8) / (2917.1 / 9021.3)
=0.30086992 / 0.32335694
=0.9305

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(4122.5 / 9021.3) / (4424.6 / 10299.8)
=0.45697405 / 0.42958116
=1.0638

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (7965.1 + 2284.2) / 36538.5) / (1 - (6485.9 + 1884.7) / 21316.5)
=0.71949314 / 0.60731827
=1.1847

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=10299.8 / 9021.3
=1.1417

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(859.9 / (859.9 + 1884.7)) / (1387.1 / (1387.1 + 2284.2))
=0.31330613 / 0.37782257
=0.8292

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2383.8 / 10299.8) / (2010.1 / 9021.3)
=0.23144139 / 0.22281711
=1.0387

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((11328.6 + 9554) / 36538.5) / ((5845.8 + 3684.1) / 21316.5)
=0.57152319 / 0.44706683
=1.2784

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(257.1 - -318.7 - 2349.7) / 36538.5
=-0.0485

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Mylan NV has a M-score of -2.65 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Mylan NV Annual Data

Mar06Mar07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.81211.12811.04311.06940.87571.09620.98281.15181.11560.9705
GMI 0.99650.95381.2990.98921.00130.97280.97720.97250.96291.0221
AQI 1.1471.86912.18320.99850.99110.98930.95771.07730.80161.2922
SGI 1.0031.28213.18740.99131.07021.12461.10871.01661.11731.2215
DEPI 1.14441.25550.28791.08471.01630.91751.00411.18880.9820.7039
SGAI 0.86720.74591.53341.00560.96680.99391.0340.9951.0331.0982
LVGI 4.09761.08981.16410.96270.98791.09480.94031.0931.00830.6726
TATA -0.1339-0.0525-0.0554-0.0365-0.0479-0.0145-0.0261-0.0267-0.0026-0.0429
M-score -4.19-1.99-0.34-2.58-2.75-2.41-2.54-2.44-2.39-2.32

Mylan NV Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.02620.9251.11561.19791.37681.3890.97050.9230.86290.9305
GMI 0.98020.97140.96290.95950.97320.98611.02211.04391.01281.0638
AQI 1.11660.91230.80160.95630.951.20971.29221.06790.8871.1847
SGI 1.03951.09111.11731.12621.17971.21171.22151.23781.18171.1417
DEPI 1.18651.08080.9820.95850.83440.75670.70390.66830.75850.8292
SGAI 1.06641.05611.04181.08031.06061.04991.09821.04851.0131.0387
LVGI 1.01161.03951.00830.73450.73270.66530.67260.91031.16171.2784
TATA -0.0398-0.0249-0.0026-0.00380.0009-0.0249-0.0429-0.0359-0.0346-0.0485
M-score -2.56-2.65-2.39-2.17-1.95-1.90-2.32-2.47-2.73-2.65
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK